Should sufficient support to start-ups be provided alongside crowdfunded equity backing, it will lead to more firms, more jobs, and more innovation all round.

Music, films, journalism and, most recently, higher education have all felt the disruptive power of the internet over the past decade. Now, venture capital (VC) looks to be getting its turn, with potentially massive implications for university start-ups currently struggling to find backing.

FundersClub, an electronic commerce start-up which allows any accredited investor to invest in startups in exchange for equity, was considered by some to be operating in a legal grey area as it wasn’t a registered broker-dealer. FundersClub…